Investigations reveal that the disclosed deal price is a whopping N120 billion ($741mn), which is 4 per cent larger than Skye Bank’s half year 2014 (1H14) equity base. Sources close to the deal expressed concerns that even if the bank succeeded in raising the money it plans to raise before year end, it might not be enough to comfortably fund the deal. The Asset Management Corporation of Nigeria (AMCON), on October 4, announced Skye Bank PLC as preferred bidder; Cedar One Investment Partners Limited (“Cedar”) as the 1st reserve bidder and Fidelity Bank PLC as the 2nd reserve bidder for the acquisition of the entire issued and fully paid up ordinary shares of Mainstreet Bank Limited. This follows the receipt of the approval of the Board of Directors of AMCON.
It said the completion of the transaction is subject to the fulfillment of the conditions precedent as stated in the Share Sale and Purchase Agreement (“SPA”) to be executed with Skye Bank as well as the receipt of all required regulatory approvals from the Central Bank of Nigeria and the Securities and Exchange Commission. SEE MORE ON PAGE 2